Reported revenue was $1.15 billion, increasing 2 percent from a year ago on a reported basis and 4 percent on a constant currency basis.

Operating income was $164 million or 14.3 percent of net sales, increasing 340 basis points from a year ago. Adjusted operating income, excluding foreign currency losses and restructuring, was $171 million or 14.8 percent of net sales, increasing 270 basis points from a year ago. The company's recent acquisition of UK-based Senscient, Inc. was dilutive to operating margin by 20 basis points for the year.

Cash flow from operating activities was $135 million compared to $55 million in the same period a year ago, primarily due to higher cash flow from working capital on increased collections of receivables and effective inventory management programs. A clear focus on improving working capital drove higher cash flow in the quarter, with working capital finishing the year at 21.7 percent of net sales, compared to 25.7 percent of net sales in 2015.

Quarterly Highlights

Reported revenue was $296 million, decreasing 6 percent from a year ago on a reported basis, and 4 percent on a constant currency basis.

Operating income was $48 million or 16.1 percent of net sales, increasing 600 basis points from a year ago. Adjusted operating income, excluding foreign currency gains and restructuring, was $48 million or 16.2 percent of net sales, increasing 400 basis points from a year ago.

Cash flow from operating activities was $103 million, compared to $45 million in the same period a year ago.

Comments from Management

"Our results for 2016 reflect strong returns on the strategic investments we've made in new products, acquisitions and restructuring programs to drive earnings expansion in a challenging economic cycle," said William M. Lambert, MSA Chairman, President and CEO. "Despite a difficult quarterly revenue comparison - attributable to the clearing of a significant backlog for self-contained breathing apparatus (SCBA) in the fourth quarter of 2015 - we achieved all of our key financial targets for the year and posted record net income of $92 million," he continued.

In particular, Mr. Lambert noted that net income increased 30 percent on revenue growth of 2 percent, driven by higher gross profit and a streamlined cost structure. He added that the company converted 119 percent of full year net income to free cash flow by reducing working capital, and was able to continue funding an increasing dividend while reducing its debt balance by $74 million from the end of 2015.

"While we managed through a slower growth environment in 2016, our corporate strategy was successful in that it allowed us to capture market share while expanding product margins and increasing profitability. As we look ahead to 2017, I'm pleased to see early signs of strengthening macro conditions and an increased order pace across several of our industrial-related product areas," Mr. Lambert said. "This momentum - coupled with the steps we have taken to drive leadership positions in our core product areas and reduce our cost structure - positions us well to drive enhanced shareholder value in 2017 and beyond."

MSA Safety Incorporated

Condensed Consolidated Statement of Income (Unaudited)

(In thousands, except per share amounts)

Three Months Ended December 31,

Twelve Months Ended December 31,

2016

2015

2016

2015

Net sales

$

296,031

$

313,318

$

1,149,530

$

1,130,783

Cost of products sold

157,710

179,308

625,887

629,680

Gross profit

138,321

134,010

523,643

501,103

Selling, general and administrative

78,288

83,587

306,144

315,270

Research and development

12,224

12,200

46,847

48,630

Restructuring charges

1,997

7,560

5,694

12,258

Currency exchange (gains) losses, net

(1,732)

(1,132)

766

2,204

Operating income

47,544

31,795

164,192

122,741

Interest expense

3,896

3,052

16,411

10,854

Other (income) loss, net

(426)

2,027

(4,130)

861

Total other expense, net

3,470

5,079

12,281

11,715

Income from continuing operations before income taxes

44,074

26,716

151,911

111,026

Provision for income taxes

18,938

7,738

57,804

44,407

Income from continuing operations

25,136

18,978

94,107

66,619

(Loss) income from discontinued operations

(300)

85

(245)

1,325

Net income

24,836

19,063

93,862

67,944

Net loss (income) attributable to noncontrolling interests

80

1,788

(1,926)

2,863

Net income attributable to MSA Safety Incorporated

24,916

20,851

91,936

70,807

Amounts attributable to MSA Safety Incorporated common shareholders:

Income from continuing operations

25,216

20,840

92,691

69,590

(Loss) income from discontinued operations

(300)

11

(755)

1,217

Net income

24,916

20,851

91,936

70,807

Earnings per share attributable to MSA Safety Incorporated common shareholders:

Basic

Income from continuing operations

$

0.67

$

0.56

$

2.47

$

1.86

(Loss) income from discontinued operations

$

(0.01)

$

—

$

(0.02)

$

0.03

Net income

$

0.66

$

0.56

$

2.45

$

1.89

Diluted

Income from continuing operations

$

0.66

$

0.55

$

2.44

$

1.84

(Loss) income from discontinued operations

$

(0.01)

$

—

$

(0.02)

$

0.03

Net income

$

0.65

$

0.55

$

2.42

$

1.87

Basic shares outstanding

37,602

37,269

37,456

37,293

Diluted shares outstanding

38,218

37,512

37,986

37,710

MSA Safety Incorporated

Condensed Consolidated Balance Sheet (Unaudited)

(In thousands)

December 31, 2016

December 31, 2015

Assets

Cash and cash equivalents

$

113,759

$

105,925

Trade receivables, net

209,514

232,862

Inventories

103,066

125,849

Notes receivable, insurance companies

4,180

6,746

Other current assets

42,287

33,230

Total current assets

472,806

504,612

Property, net

148,678

155,839

Prepaid pension cost

62,916

62,072

Goodwill

333,276

340,338

Notes receivable, insurance companies, noncurrent

63,147

1,944

Insurance receivable, noncurrent

157,929

227,483

Other noncurrent assets

115,168

130,575

Total assets

$

1,353,920

$

1,422,863

Liabilities and shareholders' equity

Notes payable and current portion of long-term debt

$

26,666

$

6,650

Accounts payable

62,734

68,206

Other current liabilities

132,010

177,031

Total current liabilities

221,410

251,887

Long-term debt, net

363,836

458,022

Pensions and other employee benefits

157,927

156,160

Deferred tax liabilities

34,044

24,872

Other noncurrent liabilities

15,491

14,794

Total shareholders' equity

561,212

517,128

Total liabilities and shareholders' equity

$

1,353,920

$

1,422,863

MSA Safety Incorporated

Condensed Consolidated Statement of Cash Flows (Unaudited)

(In thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

2016

2015

2016

2015

Net income

$

24,836

$

19,063

$

93,862

$

67,944

Depreciation and amortization

8,622

9,038

35,273

31,684

Change in working capital and other operating

69,999

17,323

5,759

(44,374)

Cash flow from operating activities

103,457

45,424

134,894

55,254

Capital expenditures

(9,377)

(11,093)

(25,523)

(36,241)

Acquisition, net of cash acquired

(188)

(180,271)

(18,449)

(180,271)

Property disposals

282

53

18,214

8,022

Cash flow (used in) investing activities

(9,283)

(191,311)

(25,758)

(208,490)

Change in debt

(76,991)

75,794

(60,908)

218,936

Cash dividends paid

(12,399)

(11,932)

(49,074)

(47,380)

Other financing

7,803

888

12,141

(6,607)

Cash flow (used in) from financing activities

(81,587)

64,750

(97,841)

164,949

Effect of exchange rate changes on cash and cash equivalents

(4,861)

(2,281)

(3,461)

(11,786)

Increase (decrease) in cash and cash equivalents

7,726

(83,418)

7,834

(73)

MSA Safety Incorporated

Segment Information (Unaudited)

(In thousands)

Americas

International

Corporate

Consolidated

Three Months Ended December 31, 2016

Sales to external customers

$

168,109

$

127,922

—

$

296,031

Operating income

47,544

Operating margin %

16.1

%

Restructuring charges

1,997

Currency exchange (gains), net

(1,732)

Adjusted operating income (loss)

45,313

14,832

(12,336)

$

47,809

Adjusted operating margin %

27.0

%

11.6

%

16.2

%

Twelve Months Ended December 31, 2016

Sales to external customers

$

678,433

$

471,097

—

$

1,149,530

Operating income

164,192

Operating margin %

14.3

%

Restructuring charges

5,694

Currency exchange losses, net

766

Adjusted operating income (loss)

162,788

46,491

(38,627)

$

170,652

Adjusted operating margin %

24.0

%

9.9

%

14.8

%

Americas

International

Corporate

Consolidated

Three Months Ended December 31, 2015

Sales to external customers

$

185,404

$

127,914

—

$

313,318

Operating income

31,795

Operating margin %

10.1

%

Restructuring charges

7,560

Currency exchange (gains), net

(1,132)

Adjusted operating income (loss)

40,138

13,632

(15,547)

$

38,223

Adjusted operating margin %

21.6

%

10.7

%

12.2

%

Twelve Months Ended December 31, 2015

Sales to external customers

$

704,754

$

426,029

—

$

1,130,783

Operating income

122,741

Operating margin %

10.9

%

Restructuring charges

12,258

Currency exchange losses, net

2,204

Adjusted operating income (loss)

141,971

33,501

(38,269)

$

137,203

Adjusted operating margin %

20.1

%

7.9

%

12.1

%

The Americas and International segments were established on January 1, 2016. The Americas segment is comprised of our operations in the U.S., Canada and Latin America. The International segment is comprised of our operations in all other parts of the world including Europe, Africa, the Middle East, India, China, South East Asia and Australia. Certain global expenses are now allocated to each segment in a manner consistent with where the benefits from the expenses are derived. The 2015 segment results have been recast to conform with current period presentation.

Adjusted operating income (loss) and adjusted operating margin are the measures used by the chief operating decision maker to evaluate segment performance and allocate resources. As such, management believes that adjusted operating income (loss) and adjusted operating margin are useful metrics for investors. Adjusted operating income (loss) is defined as operating income excluding restructuring and currency exchange gains / losses. Adjusted operating margin is defined as adjusted operating income (loss) divided by net sales. Adjusted operating income (loss) and adjusted operating margin are not recognized terms under GAAP, and the Company's definition of adjusted operating income (loss) and adjusted operating margin may not be comparable to similarly titled measures of other companies. As such, management believes that it is appropriate to consider operating income determined on a GAAP basis in addition to these non-GAAP measures.

MSA Safety Incorporated

Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures

Constant currency revenue growth (Unaudited)

Organic constant currency revenue growth (Unaudited)

Consolidated

Three Months Ended December 31, 2016

Breathing Apparatus

Fire and Rescue Helmets

Industrial Head Protection

Portable Gas Detection

Fixed Gas and Flame Detection

Fall Protection

Core Sales

Non-Core Sales

Net Sales

GAAP reported sales change

(17)

%

(18)

%

3

%

(3)

%

4

%

23

%

(5)

%

(9)

%

(6)

%

Plus: Currency translation effects

1

%

1

%

1

%

2

%

—

%

12

%

2

%

1

%

2

%

Constant currency sales change

(16)

%

(17)

%

4

%

(1)

%

4

%

35

%

(3)

%

(8)

%

(4)

%

Less: Acquisitions

—

%

—

%

—

%

—

%

4

%

38

%

4

%

—

%

3

%

Organic constant currency change

(16)

%

(17)

%

4

%

(1)

%

—

%

(3)

%

(7)

%

(8)

%

(7)

%

Twelve Months Ended December 31, 2016

Breathing Apparatus

Fire and Rescue Helmets

Industrial Head Protection

Portable Gas Detection

Fixed Gas and Flame Detection

Fall Protection

Core Sales

Non-Core Sales

Net Sales

GAAP reported sales change

—

%

(6)

%

(5)

%

—

%

(1)

%

81

%

4

%

(7)

%

2

%

Plus: Currency translation effects

1

%

1

%

4

%

3

%

1

%

7

%

2

%

3

%

2

%

Constant currency sales change

1

%

(5)

%

(1)

%

3

%

—

%

88

%

6

%

(4)

%

4

%

Less: Acquisitions

—

%

—

%

—

%

—

%

1

%

95

%

6

%

—

%

5

%

Organic constant currency change

1

%

(5)

%

(1)

%

3

%

(1)

%

(7)

%

—

%

(4)

%

(1)

%

Management believes that constant currency revenue growth is a useful metric for investors, as foreign currency translation can have a material impact on revenue growth trends. Constant currency revenue growth highlights ongoing business performance excluding the impact of fluctuating foreign currencies, which is outside of management's control.

There can be no assurances that MSA's definition of constant currency revenue growth or organic constant currency revenue growth is consistent with that of other companies. As such, management believes that it is appropriate to consider revenue growth determined on a GAAP basis in addition to these non-GAAP financial measures.

MSA Safety Incorporated

Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures

Constant currency revenue growth (Unaudited)

Organic constant currency revenue growth (Unaudited)

Americas Segment

Three Months Ended December 31, 2016

Breathing Apparatus

Fire and Rescue Helmets

Industrial Head Protection

Portable Gas Detection

Fixed Gas and Flame Detection

Fall Protection

Core Sales

Non-Core Sales

Net Sales

GAAP reported sales change

(24)

%

(12)

%

4

%

(2)

%

(9)

%

28

%

(10)

%

(4)

%

(9)

%

Plus: Currency translation effects

1

%

—

%

1

%

3

%

—

%

3

%

1

%

2

%

1

%

Constant currency sales change

(23)

%

(12)

%

5

%

1

%

(9)

%

31

%

(9)

%

(2)

%

(8)

%

Less: Acquisitions

—

%

—

%

—

%

—

%

—

%

36

%

3

%

—

%

2

%

Organic constant currency change

(23)

%

(12)

%

5

%

1

%

(9)

%

(5)

%

(12)

%

(2)

%

(10)

%

Twelve Months Ended December 31, 2016

Breathing Apparatus

Fire and Rescue Helmets

Industrial Head Protection

Portable Gas Detection

Fixed Gas and Flame Detection

Fall Protection

Core Sales

Non-Core Sales

Net Sales

GAAP reported sales change

(4)

%

5

%

(5)

%

—

%

(7)

%

12

%

(3)

%

(7)

%

(4)

%

Plus: Currency translation effects

—

%

1

%

3

%

3

%

1

%

4

%

2

%

3

%

2

%

Constant currency sales change

(4)

%

6

%

(2)

%

3

%

(6)

%

16

%

(1)

%

(4)

%

(2)

%

Less: Acquisitions

—

%

—

%

—

%

—

%

—

%

24

%

2

%

—

%

1

%

Organic constant currency change

(4)

%

6

%

(2)

%

3

%

(6)

%

(8)

%

(3)

%

(4)

%

(3)

%

Management believes that constant currency revenue growth is a useful metric for investors, as foreign currency translation can have a material impact on revenue growth trends. Constant currency revenue growth highlights ongoing business performance excluding the impact of fluctuating foreign currencies, which is outside of management's control.

There can be no assurances that MSA's definition of constant currency revenue growth or organic constant currency revenue growth is consistent with that of other companies. As such, management believes that it is appropriate to consider revenue growth determined on a GAAP basis in addition to these non-GAAP financial measures.

MSA Safety Incorporated

Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures

Constant currency revenue growth (Unaudited)

Organic constant currency revenue growth (Unaudited)

International Segment

Three Months Ended December 31, 2016

Breathing Apparatus

Fire and Rescue Helmets

Industrial Head Protection

Portable Gas Detection

Fixed Gas and Flame Detection

Fall Protection

Core Sales

Non-Core Sales

Net Sales

GAAP reported sales change

(2)

%

(21)

%

—

%

(6)

%

17

%

18

%

4

%

(13)

%

—

%

Plus: Currency translation effects

1

%

1

%

3

%

2

%

1

%

20

%

4

%

—

%

4

%

Constant currency sales change

(1)

%

(20)

%

3

%

(4)

%

18

%

38

%

8

%

(13)

%

4

%

Less: Acquisitions

—

%

—

%

—

%

—

%

8

%

20

%

7

%

—

%

6

%

Organic constant currency change

(1)

%

(20)

%

3

%

(4)

%

10

%

18

%

1

%

(13)

%

(2)

%

Twelve Months Ended December 31, 2016

Breathing Apparatus

Fire and Rescue Helmets

Industrial Head Protection

Portable Gas Detection

Fixed Gas and Flame Detection

Fall Protection

Core Sales

Non-Core Sales

Net Sales

GAAP reported sales change

10

%

(12)

%

(4)

%

1

%

7

%

280

%

16

%

(6)

%

11

%

Plus: Currency translation effects

2

%

1

%

4

%

3

%

2

%

16

%

3

%

2

%

2

%

Constant currency sales change

12

%

(11)

%

—

%

4

%

9

%

296

%

19

%

(4)

%

13

%

Less: Acquisitions

—

%

—

%

—

%

—

%

3

%

292

%

14

%

—

%

10

%

Organic constant currency change

12

%

(11)

%

—

%

4

%

6

%

4

%

5

%

(4)

%

3

%

Management believes that constant currency revenue growth is a useful metric for investors, as foreign currency translation can have a material impact on revenue growth trends. Constant currency revenue growth highlights ongoing business performance excluding the impact of fluctuating foreign currencies, which is outside of management's control.

There can be no assurances that MSA's definition of constant currency revenue growth or organic constant currency revenue growth is consistent with that of other companies. As such, management believes that it is appropriate to consider revenue growth determined on a GAAP basis in addition to these non-GAAP financial measures.

MSA Safety Incorporated

Supplemental Segment Information (Unaudited)

Summary of constant currency revenue growth by segment and product group

Three Months Ended December 31, 2016

Consolidated

Americas

International

Fall Protection*

35

%

31

%

38

%

Fixed Gas and Flame Detection

4

%

(9)

%

18

%

Head Protection

4

%

5

%

3

%

Portable Gas Detection

(1)

%

1

%

(4)

%

Breathing Apparatus

(16)

%

(23)

%

(1)

%

Fire & Rescue Helmets

(17)

%

(12)

%

(20)

%

Total Core Products

(3)

%

(9)

%

8

%

Core excluding Acquisitions

(7)

%

(12)

%

1

%

Non-Core Products

(8)

%

(2)

%

(13)

%

Net Sales

(4)

%

(8)

%

4

%

Net Sales excluding Acquisitions

(7)

%

(10)

%

(2)

%

Twelve Months Ended December 31, 2016

Consolidated

Americas

International

Fall Protection*

88

%

16

%

296

%

Fixed Gas and Flame Detection

—

%

(6)

%

9

%

Head Protection

(1)

%

(2)

%

—

%

Portable Gas Detection

3

%

3

%

4

%

Breathing Apparatus

1

%

(4)

%

12

%

Fire & Rescue Helmets

(5)

%

6

%

(11)

%

Total Core Products

6

%

(1)

%

19

%

Core excluding Acquisitions

—

%

(3)

%

5

%

Non-Core Products

(4)

%

(4)

%

(4)

%

Net Sales

4

%

(2)

%

13

%

Net Sales excluding Acquisitions

(1)

%

(3)

%

3

%

*Fall protection growth rates include the impact from Latchways sales.

MSA Safety Incorporated

Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures

Management believes that constant currency SG&A expense and organic constant currency SG&A expense are useful metrics for investors to measure the effectiveness of the company's cost reduction program announced in 2015. Constant currency SG&A expense highlights spending patterns excluding fluctuating foreign currencies. Organic constant currency SG&A expense highlights the impact of acquisitions and strategic transaction costs. These metrics provide investors with a greater level of clarity into spending levels on a year-over-year basis. MSA's definition of this metric may not be comparable to metrics used by other companies. As such, management believes that it is appropriate to consider SG&A expense determined on a GAAP basis in addition to these non-GAAP measures.

MSA Safety Incorporated

Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures

Adjusted earnings (Unaudited)

Adjusted earnings per diluted share (Unaudited)

(In thousands, except per share amounts)

Three Months Ended December 31,

Twelve Months Ended December 31,

2016

2015

% Change

2016

2015

% Change

Income from continuing operations attributable to MSA Safety Incorporated

$

25,216

$

20,840

21%

$

92,691

$

69,590

33%

Tax charges associated with European reorganization

2,873

—

6,473

7,605

Non-deductible strategic transaction costs

—

2,172

—

2,879

Subtotal

28,089

23,012

22%

99,164

80,074

24%

Restructuring charges

1,997

7,560

5,694

12,258

Strategic transaction costs

1,710

4,583

2,531

4,583

Senscient operating loss

788

—

—

788

—

Asset related losses (gains), net

59

1,098

(756)

1,636

Self-insured legal settlements and defense costs

26

(69)

341

982

Currency exchange (gains) losses, net

(1,732)

(1,132)

766

2,204

Income tax expense on adjustments

(1,038)

(3,492)

(3,161)

(6,792)

Adjusted earnings

29,899

31,560

(5)%

105,367

94,945

11%

Adjusted earnings per diluted share

$

0.78

$

0.84

(7)%

$

2.77

$

2.52

10%

Management believes that adjusted earnings and adjusted earnings per diluted share are useful measures for investors, as management uses these measures to internally assess the company's performance and ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that MSA's definition of adjusted earnings is consistent with that of other companies. As such, management believes that it is appropriate to consider both net income determined on a GAAP basis as well as adjusted earnings.

MSA Safety Incorporated

Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures

Free cash flow (Unaudited)

(In thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

2016

2015

2016

2015

Cash flow from operating activities

$103,457

$45,424

$134,894

$55,254

Capital expenditures

(9,377)

(11,093)

(25,523)

(36,241)

Free cash flow

$

94,080

$

34,331

$

109,371

$

19,013

Net income attributable to MSA Safety Incorporated

$

24,916

$

20,851

$

91,936

$

70,807

Free cash flow conversion

378%

165%

119%

27%

Management believes that free cash flow is a meaningful measure for investors. Management reviews cash from operations after deducting capital expenditures because these expenditures are necessary to promote growth of MSA's business and are likely to produce cash from operations in future periods. It is important to note that free cash flow does not reflect the residual cash balance of the company for discretionary spending since other items, including debt and dividend payments, are deducted from free cash flow before arriving at the company's ending cash balance. Management defines free cash flow conversion as free cash flow divided by net income attributable to MSA Safety.

About MSA: Established in 1914, MSA Safety Incorporated is the global leader in the development, manufacture and supply of safety products that protect people and facility infrastructures. Many MSA products integrate a combination of electronics, mechanical systems and advanced materials to protect users against hazardous or life-threatening situations. The company's comprehensive product line is used by workers around the world in a broad range of markets, including the oil, gas and petrochemical industry, the fire service, the construction industry, mining and the military. MSA's core products include self-contained breathing apparatus, fixed gas and flame detection systems, portable gas detection instruments, industrial head protection products, fire and rescue helmets, and fall protection devices. With 2016 revenues of $1.15 billion, MSA employs approximately 4,300 people worldwide. The company is headquartered north of Pittsburgh in Cranberry Township, Pa., and has manufacturing operations in the United States, Europe, Asia and Latin America. With more than 40 international locations, MSA realizes approximately half of its revenue from outside North America. For more information visit MSA's web site at www.MSAsafety.com.

Cautionary Statement Regarding Forward-Looking Statements:Except for historical information, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to all projections and anticipated levels of future performance. Forward looking statements involve risks, uncertainties and other factors that may cause our actual results to differ materially from those discussed herein. Any number of factors could cause actual results to differ materially from projections or forward looking statements, including without limitation global economic conditions, spending patterns of government agencies, competitive pressures, the impact of acquisitions and related integration activities, product liability claims, the success of new product introductions, currency exchange rate fluctuations and the risks of doing business in foreign countries. A full listing of these risks, uncertainties and other factors are detailed from time-to-time in our filings with the United States Securities and Exchange Commission ("SEC"), including our most recent Form 10-K filed on February 29, 2016. You are strongly urged to review all such filings for a more detailed discussion of such risks and uncertainties. MSA's SEC filings are readily obtainable at no charge at www.sec.gov, as well as on its own investor relations website at http://investors.MSAsafety.com. MSA undertakes no duty to publicly update any forward looking statements contained herein, except as required by law.

Non-GAAP Financial Measures:This earnings release includes certain non-GAAP financial measures. These financial measures include constant currency revenue growth, organic constant currency revenue growth, constant currency selling, general and administrative expense, organic constant currency selling, general and administrative expense, adjusted operating income, adjusted operating margin, adjusted earnings per diluted share, free cash flow and free cash flow conversion. The presentation of these financial measures does not comply with U.S. generally accepted accounting principles ("GAAP"). For an explanation of these measures, together with a reconciliation to the most directly comparable GAAP financial measure, see the Reconciliation of As Reported Financial Measures to Non-GAAP Financial Measures in the financial tables section above.